Talos Energy in partnership with Premier Oil Plc and Sierra Oil & Gas has ventured the Mexican oil exploration industry. This venture is the first oil exploration attempt within Mexican borders by private companies. The Mexican oil exploration industry has been under control of state owned Petroleos Mexicanos since 1938 when the industry was nationalized. However, in a bid to rescue the ailing sector, the industry was liberalized in 2013 to bring competition in the industry.
The three companies won the oil exploration rights in the first round of bidding in 2015. The drilling began on May 21 and is expected to be complete within 90 days. According to the London-basin Premier Oil Plc, the Zama well, which is located in the Sureste Basin, is estimated to hold 100 million to 500 million barrels of crude. Talos Energy is the operator of the well and will reap 35 percent of the benefits. Premier Oil and Mexico’s Sierra Oil & Gas will gain 25 percent and 40 percent respectively.
What Do Analysts Say?
According to analysts, given that the Zama-1 oil exploration is the first private venture in over 80 years, the prospect would be keenly watched. Also, the analysts suggested that the structure of the basin indicate a higher geological probability of succeeding.
Talos Energy in Brief
Talos Energy is a leading oil and gas company. The Huston, Texas-based firm was founded in 2012 with a goal of exploring offshore hydrocarbons in the Mexican offshore and the US Gulf of Mexico region. Talos Energy partnered with Riverstone Holdings and Apollo Global Management. Buying assets in the Gulf Coast and the Gulf of Mexico were the primary reasons for the partnership.
Talos Energy has a team of highly qualified and experienced professionals who utilize state-of-the-art technologies, which have been setting the pace in the rapidly growing oil industry. In 2013, just a year after its formation, Talos was named among the best workplaces by WorkplaceDynamics. This award honored Talos Energy for the use of cutting-edge technologies and commitment towards ensuring safe working environment. Today, five years after its formation, Talos has managed to develop and sell Phoenix Exploration and Gryphon Exploration.